Real Estate September 19, 2022

You’ll Lose Money When You Overprice Your Home

You are probably asking yourself, “did I read that right?”

 

Yes, yes you did.

 

It is normal for sellers to want to get the most money out of the sale of their homes. It feels safe to list your home at the price you are desiring to get, but the reality is listing high might actually do your pocketbook more harm than good in the long run. Follow along as we explain why.

 

RISKS OF OVERPRICING YOUR HOME

 

You are drawing the attention of the wrong buyers.

 

Most people begin their home purchasing journey by searching which homes are available in their desired location online. Consider this. Your home is worth $500,000, but you list it for $575,000. When buyers are looking online, they filter to find homes within their price range and typically by $25,000 increments.  The person looking for a $500,000 home will never see yours and if they do they will believe it is out of their reach, and when the buyers looking in the $575,000 range see your home and compare it to others in that range, they will get the impression it is not worth it, and there are better options.

 

Fewer people will see your home.

 

When your home is overpriced, the issue can be detected by buyers just by looking at your online listing and will pass on viewing it in person. The more showings you have, the more legitimate interest there is, and the more likely your home is to sell. Showings give potential buyers an opportunity to see the home first-hand giving them the opportunity to imagine themselves living there.

On the other hand, if you get lots of showings because your photos look better than reality but no offers you’ve wasted your best shot at getting the right buyer through your home and you there are no redo’s for first impressions. This leads us to our next point…

 

You are sending the “I’m an undesirable home” message to the public.

 

As people continue to look for a home and new buyers enter the market, they might see your home online, but by that time they will also see the “time on market”. The longer your home sits on the market, the less attractive it becomes psychologically to everyone. Nobody wants the home that nobody else wants. Once it has lost its appeal the damage is done. You’ll find yourself beginning to reduce your price and often end up at a price less than what the home could have sold for if it was priced right the first time.

 

In conjunction with price reductions, the longer your home sits on the market, the more expenses you incur. Consider mortgage payments, utility costs, lawn care maintenance, seller’s fees, and more while you are trying to move out.

 

Your buyers won’t be able to finance if it doesn’t appraise.

 

Perhaps you drop the price just enough to intrigue a buyer but still above market level. Maybe you’re lucky enough to hook a buyer. Then the appraisal comes back low. Now you either have to come down in price or lose the buyer and start over again, with 20-30 days more on market…

 

If you are considering selling your home and would like a complimentary analysis to determine the correct value of your home in this market connect with us to be paired with an experienced Windermere agent that can help you with your unique situation and avoid all the overpricing pitfalls.

Real Estate September 12, 2022

What to Expect When Selling Your Home

Selling your home can be overwhelming and feel like a full-time job… which is why there are realtors! Good realtors make the process so much smoother and less intimidating. To keep your mind at ease and prepare you for what will happen throughout the sale of your home we are sharing 10 top tips to get you from listed to sold in no time!

Discover what to expect when selling your home

1.       Select the right agent the 1st time

It is of the utmost importance that you pair with a full-time, knowledgeable agent who can best represent you through the process. This should be your number one priority. Studies show that homes listed with an agent sell for more than those listed without, and this is for good reason. Great agents dedicate their lives to keeping up with economic changes, are masters at negotiating and getting things done, and know all rules and regulations. This will pay off immensely in the long run if you trust their process. If you are unsure where to start, ask your friends who they trust and about their experience with them but don’t stop there. Interview at least two, preferably three brokers, and the differences should be immediately clear. If you still need help, Windermere has a full-time manager that will ask you pertinent questions about your needs, personality style, and specific goals to make the perfect real estate agent match. Windermere’s ultimate goal is not the sale of a home but to give you a real estate experience you want to share with others! When you are ready to pair with an agent connect with us and we will match you with the perfect broker.

2.       Set your timeline

A timeline is valuable in that it will keep you organized throughout the entire selling process. Anticipate that your timeline might change depending on circumstances and your local housing market conditions. You may need to adjust a couple of times, but the purpose is to keep you on track toward your end goal. SOLD! Your timeline will help guide you there. Know what the average days on market are for your home and price range (click here to determine Whidbey Islands) then add an average of 30-45 on that to get an estimate of how long it will take to sell once you go live. Work with your agent to build your unique timeline.

3.       Determine your home’s value

The SECRET to selling quickly is pricing your home right the first day it hits the market. Overpricing can create serious problems like not being seen by the right buyers, less traffic both in person and virtually, and worst of all becoming less attractive to buyers the longer it sits resulting in lower offers than if you priced it attractively, to begin with. Your agent will provide you with a (CMA) Comparative Market Analysis which compares your home to others in your local area that recently sold and/or are actively pending. This formulated analysis will assist you in properly determining the best price for your home. Discuss this with your agent. They will help walk you through the process even if you aren’t sure you’re ready to sell yet.

4.       Identify issues & execute the plan

This is the time to tackle any unfinished projects and address needed repairs. Talk with your agent to see if a pre-sale home inspection would be advantageous for your unique situation. Begin by creating a list of repairs you can do versus those needing to be hired out. Your agent can help you determine which will be the best use of your time, offer the largest return on investment, and help you find vendors and hire out projects. If money is tight it may be in your best interest to apply to our Windermere Ready Program which gets you cash for fixing up your home to list. Ask your Windermere Agent about how to apply.

5.       Put your best foot forward

First impressions go a long way! Start with curb appeal. Clean up your gardens, mow your lawns, clean out gutters, and add a pop of color to your flower beds. If you have any cracked or peeling paint, apply a fresh coat. Make sure to declutter the inside of your home. The best rule of thumb is to remove personal effects and present your home like a hotel in which the buyer could envision themselves living in the space. Talk to your agent about the possibility of having your home professionally staged.

6.       Get your home seen

Your realtor will help maximize the exposure of your home. They can list with the MLS, will get your listing on all major sites like Zillow and Redfin, and will be listed on their Brokerage site in addition to their own. These are just a few of the many ways in which your listing can be seen. Be sure to discuss the option for virtual tours with your agent. When it’s time for in-person showings, we suggest that you not be present so that the potential buyers can freely walk the home with their agent, ask questions, and ultimately have the space to imagine it as their new home.

7.       Reviewing offers & negotiating

If you price right, you might see more than one offer on your home because we are still in a strong Seller’s market. The offers may be at or above the asking price. When reviewing offers, you have three options: 1. Accept the offer, 2. Make a counteroffer, 3. Reject the offer. These should ALWAYS be made in writing, and you should always give the buyer a short time to respond. Whether you are selling or buying, you will likely find yourself in negotiations. It is important for you to discuss negotiation strategies with your agent ahead of time. At Windermere, we pride ourselves on negotiation tactics grounded in psychology and win-win strategies.

8.       Budget for closing costs

Closing costs include things like title insurance, recording fees, government taxes, lender fees, broker commissions, and numerous other things. Be sure to discuss this with your agent ahead of time and throughout the transaction so you don’t feel blindsided at closing and are adequately prepared.

9.       The inspection

It is common for offers to be contingent on a professional home inspection. Your agent can prepare you for what to expect from a home inspection. Typically a home inspector will look at things like the foundation, structure, roof, plumbing and electrical systems, floors, windows, doors, and signs for things like water or fire damage.

10.   Closing

You finally made it, but before you can officially close there are a couple of things to do. Ask the buyer to release any contingencies, sign the title, and close escrow before releasing the keys. Your escrow agent will help you through this process. Talk with your agent about questions you have about legal documents and settlement costs.

 

If you are considering selling and would like to speak to an experienced Windermere Realtor for more specific information connect with us by clicking here.

Real Estate September 9, 2022

Back to School: Realtors Edition

If you aren’t a real estate broker you probably don’t know that September doesn’t just initiate back to school for our kids but as an industry, this is the beginning of conference season! This just means that Fall and Winter tend to be slower seasons and provide the best time for busy brokers to grab a block of hours or even a block of days to spend sharpening their skills. Great brokers are committed to being lifelong learners. They keep up with the ever-changing market, lending options, negotiating tactics, marketing techniques for properties, and the list goes on.

If you are a broker…

You may be looking for some great opportunities that are coming up in the next few months. We have collected a few that we think will be really worth your time. Take a peek and please let us know if we missed one of your favorites because we would love to add it to our list.

 

New Forms are coming SOON! Please take advantage of educational opportunities to study and familiarize yourself with the changes.

 

You can take one of the many virtual classes the NWMLS is offering here

 

Sept 16 noon-6pm at Swinomish Casino. NPSAR “Wow, What Just Happened” education day. 3.5 Clock hours.

 

Oct. 14, 9-3pm in Oak Harbor! Fair Housing Class, 6 clock hours

 

Ninja Installation Tacoma Dec 5-8 (Brokerage pays for 1st timers)! $1,100  Thinking about joining our team? Connect with us. 

 

Conference Opportunities:

 

Windermere Homecoming! $350 (plus accommodation and travel) Sept. 29-30

 

Inman Connect NYC Jan 24-26 $900

 

Denise Lones Prosperity Strategy California Nov 9-11, only 50 people! $3,500 w/ accommodation

 

NAR Conference Orlando Nov 11-13 $450

 

In addition to these great learning opportunities our brokerage brings in an expert speaker 2-3 times on topics from septic systems to negotiation tactics, from topics as unique as forestry management to ones that are pretty applicable on an island like shoreline processes and bluff stabilization. If you’d like to attend one of these trainings let us know! We’d love for you to be our guest in learning because the better we can serve our clients in this industry the better!